Re: A FRIENDLY COLLECTION SERVICE
[ Follow Ups ] [ Post Followup ] [ Credit Forum Index ]
Posted by Fenrir
(148.129.143.132) on November 01, 2002 at 15:47:44:
In Reply to: A FRIENDLY COLLECTION SERVICE posted by DebtGuy on November 01, 2002 at 15:13:01:
Even if they were "friendly", "cordial", etc. as a debt collector you do not seem to understand what this forum is all about. Let me educate you... Collection agencies are either ASSIGNED debts or they PURCHASE debts. Either way, when a debt is "charged-off" it goes to a collection agency. Collection agencies, as you know, are driven by performance (how much they can take in from debtors). If the debts are ASSIGNED: Collection agencies that are "successful" in their attempts get quite a bit of the "take" on these accounts if debtors pay them. The original creditors will not see the full amount of the charge-off. If the debts are PURCHASED by the CA: Collection agencies in this case will have invested mere PENNIES ON THE DOLLAR for the charged-off accounts. Example: A debtor has a Visa credit card whose account has gone into charge-off status for the amount of $1,000. A collection agency (you have your pick of many) has PURCHASED this account for, let's say, five cents on the dollar, or $50. Collection agencies also have this thing about tacking on all sorts of fees, interest, and other trash, in addition to the charged-off amount. Let's use the second example (the PURCHASED account). I (Fenrir) receive a call from your CA requesting payment on this account which your company has purchased. Now I know that the original creditor (Visa) doesn't have any more interest in this account as it has been charged-off to P&L. They don't care anymore, basically. And I also know that YOUR agency has bought this account (probably as part of a package deal) for only $50. HOWEVER, your CA wants me to pay the full amount of the charge-off ($1,000) PLUS all of these other bogus fees (keep in mind that the OC will NEVER see any of this money). Let's also, for the sake of argument, that the total amount of fees, etc. is now at the time of your phone call to me $2,000. Now let's do the math: your CA invested $50 for this charged-off account, your CA now wants $3,000 from me, that means your CA gets a $2,950 profit. Now I don't know how stupid you may think I and others on this board may be but I can GUARANTEE your CA will NEVER get a single cent out of me because this little demonstration shows EXACTLY how CAs operate. And let's not also forget the deceptive practices employed by CAs when it comes to credit reporting. So, Mr. Debt Collector, the answer is NO I will NOT deal with you, however, I will not avoid you because if you call my residence you had better be prepared for my "tweeter treatment". Now, if you want to debate some more on this I will be more than happy to take you up on it.
Follow Ups:
Post a Followup
|
